Factors influencing visitor loyalty at an
agri-festival in South Africa
M Fourie
21682755
Dissertation submitted in
partial
fulfillment of the requirements
for the degree
Magister Commercii
in
Tourism Management
at
the Potchefstroom Campus of the North-West University
Supervisor:
Prof. dr. M Kruger
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ACKNOWLEDGEMENTS
Firstly I would like to thank our Heavenly Father that gave me the strength to carry on in times when it was very difficult to manage between my work and studies.
I want to thank my mother who is my role model in life and all her motivational messages, encouragement and believing in me every step of the way. Mom I am dedicating this study to you for the most precious love you always shown me. You are truly a remarkable person and you just refused to be put down by the troubles that the world throws you with.
My fiancé, JP de Beer, all your support is much appreciated. Thank you for your encouragement, unconditional love and patience during my studies. I am lucky to have you in my life.
To the most precious friend, Chantel van Zyl, I want to thank you for your contribution in my studies especially with the encouragement and help. Chantel you will always be my person. Thank you for always listening and assisting me whenever I needed your help.
To my work colleagues, Sharon Gordon, Lisinta Botes and Shaun Nieuwenhuizen, who always showed understanding and compassion towards my studies.
Thank you for my study leader, Prof Martinette Kruger. You are my inspiration and I would not be able to complete the dissertation without your help. You always just had the right words to motivate me and to do my best.
Thank you Wim Venter and the management team of the Nampo Harvest Day for giving me the opportunity to conduct the research.
Thank you Dr. Suria Ellis for your assistance with the statistical chapter.
“Success is not final, failure is not fatal: it is the courage to continue that counts” –
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ABSTRACT
Factors influencing visitor loyalty at an agri-festival in South Africa
The agri-tourism sector is an important sector, especially in South Africa, since there are rural areas that can still be developed for these purposes. Agri-tourism can be achieved when both the agricultural and tourism sector work together in achieving an entrepreneurial advantage. Some of the benefits of agri-tourism include job creation, new ideas and innovation, it serves as additional income and it has an educational aspect attached to it. Agri-tourism is a form of rural tourism and agri-festivals such as the NAMPO Harvest Day is part of the numerous categories of agri-tourism. The NAMPO Harvest Day is the largest agri-festival in the Southern Hemisphere which attracted over 72 000 visitors in 2013. The NAMPO Harvest Day started in the Bloemfontein district in 1967 and continued its success in Bothaville, Free State.
To ensure that a decrease in ticket sales and attendance of the agri-festival does not take place or a decrease in the product life cycle of the agri-festival, it is important for the management team to focus on the factors that may have an influence on loyalty such as image and customer satisfaction, visitor attributes, behavioural intentions, festival attributes and travel motives. Competition is increasing in South Africa, which means that the management must have a distinct advantage over the other agri-festivals hosted in South Africa. Loyalty occurs when a customer repeatedly invests in a product or service where the result will be positive word of mouth and positive recommendations to others. Seeing that the NAMPO Harvest Day is the largest of its kind in the Southern Hemisphere that also attracts international visitors, it is important for management to focus on the loyalty factors to ensure continuous success.
The goal of this study was to thus assess the factors that influence visitor loyalty to this agri-festival in South Africa. In order to achieve this goal, a survey was conducted at the NAMPO Harvest Day in 2014. A total of 422 questionnaires were administered over a period of 4 days. Various statistical analyses were performed: descriptive statistics were used to profile the respondents where after factor analyses were used to firstly identify the factor Loyalty and secondly to identify the factors that may influence loyalty to the festival. Nine factors were identified (in order of importance): Agricultural exposure and edification, General management,
escape and socialisation, Price and quality of implements, machinery and livestock, Price and quality of food and beverages, Amenities, Signage and marketing, Networking and trade, and Value.
T-tests, ANOVAs and Spearman’s Rank Order Correlations were used to determine whether
statistically significant differences existed between the respondents’ socio-demographic and behavioural characteristics and the factor Loyalty as well as between the contributing factors, so
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as to establish where differences occur between two groups and more groups. There were statistically significant differences based on demographic and behavioural intentions and loyalty factors. Spearman’s Rank Order Correlations were used to determine which demographic and behavioural aspects correlate with one another. In addition, Structural Equation Modelling was used to determine the relation between the factors and Loyalty. In preparation for the Structural Equation Modelling, Spearman’s Rank Order Correlations were also used to determine the relation between the factor Loyalty and the contributing factors as well as between the different contributing factors. The model provided evidence of a good fit since the CFI was between 0.0 and 1.0 (0.819) and the relative/normed chi-square was 3.987 and acceptable chi-square ranges between 2.0 and 5.0. The factors that had a direct relationship and are supported at 5% significance level with Loyalty were Agricultural exposure and edification as well as Lifestyle,
escape and socialisation.
The contribution of this research is twofold: firstly, to the authors’ knowledge, agri-tourists to a specific agri-festival in South Africa were analysed in terms of their demographic profile and behavioural characteristics. Therefore this research greatly contributes towards the literature base regarding these types of tourists. Secondly, this research identified the factors that contribute towards loyalty at an agri-festival and how organisers and marketers can effectively use these factors to sustain loyalty among not only repeat visitors, but first-timers as well. The results from this research can aid this agri-festival to remain competitive and remain in a growth phase of its product lifecycle. This is imperative for the future success of agri-festivals such as the NAMPO Harvest Day.
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TABLE OF CONTENTS
CHAPTER 1: Introduction, problem statement, research objectives and method of research
1.1 Introduction 1
1.2 Background to the problem 3
1.2.1 Loyalty and related theories 3
1.2.2 Factors influencing loyalty 4
1.2.3 Previous research on loyalty in a festival context 7
1.3 Problem statement 10
1.4 Goal of the study 11
1.5 Research methodology 11
1.5.1 Literature study 11
1.5.2 Empirical study 12
1.5.2.1 Research design and method for collecting data 12
1.5.2.2 Sampling 12
1.5.2.3 Development of the questionnaire 13
1.5.2.4 Survey 14
1.5.2.5 Data Analysis 15
1.6 Defining the concepts 15
1.6.1 Agri-tourism 16
1.6.2 Agri-festivals 16
1.6.3 NAMPO Harvest Day 16
1.6.4 Loyalty 17
1.7 Chapter classification 17
CHAPTER 2: An analysis of Agri-tourism
2.1. Introduction 19
2.2. Defining Agri-tourism 19
2.3. A historical overview of agri-tourism 21
2.3.1 United States of America (USA) 21
2.3.2 Europe 21
2.3.3 Australia 22
2.3.4 New Zealand 22
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2.5. Classification of agri-tourism 24
2.6. Benefits of agri-tourism 28
2.7. Profile of agri-tourists 31
2.8. Previous research on agri-tourism 33
2.9. Agri-events/festivals 36
2.10. Role-players (stakeholders) at an agri-festival 38
2.11. Benefits of agri-festivals 41
2.12. Conclusion 42
CHAPTER 3: Analysing loyalty in a festival context
3.1. Introduction 44
3.2. Defining loyalty 45
3.3. Types of loyalty 45
3.4. Loyalty theories in Marketing 48
3.4.1 The Bi-dimensional loyalty model 48
3.4.2 Multi-dimensional loyalty model 50
3.4.2.1 Critical reflection on the Bi-dimensional and Multi-dimensional Model 51
3.4.3 Conceptual Theory of Loyalty 51
3.4.3.1 Critical reflection on the Conceptual Theory of Loyalty 53
3.4.4 Creating a relationship: The loyalty triangle 54
3.4.4.1 Process 54
3.4.4.2 Value creation 55
3.4.4.3 Communication 55
3.4.4.4 Critical reflection on the loyalty theory 55
3.5 Benefits of loyalty 55
3.6 Aspects that play a role in tourism loyalty 57
3.6.1 Repeat visits 57
3.6.2 Customer satisfaction 58
3.6.3 Travel motivations 58
3.6.4 External factors (Price and Quality) 60
3.6.5 Knowing your target market 60
3.6.6 Product offerings 61
3.6.7 Marketing and brand awareness 61
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3.8 Decision-making in the post-purchase stage 63
3.8.1 Dissatisfied responses 65
3.8.2 Satisfied responses 65
3.9 First-time versus repeat visits 66
3.10 Factors influencing loyalty 67
3.10.1 Image and customer satisfaction 68
3.10.2 Visitor attributes 69 3.10.3 Behavioural intentions 70 3.10.4 Festival attributes 70 3.10.5 Travel motives 71 3.10.6 Additional factors 72 3.11 Importance of loyalty 72 3.12 Conclusion 73
CHAPTER 4: Clarifying the concepts used in the research process
4.1 Introduction 75
4.2 The research process 75
4.2.1 Step 1: Define the research problem and identify the research problems 75 4.2.2 Step 2: Selecting the research design appropriate for the nature of the study 77
4.2.2.1 Primary and secondary data 77
4.2.2.2 Qualitative and quantitative methods 78
4.2.3 Step 3: Sampling planning 81
4.2.4 Step 4: Data collection 82
4.2.5 Step 5: Data analysis 82
4.2.5.1 Factor analysis 83
4.2.5.2 Correlation analysis 85
4.2.5.3 ANOVA analysis and t-tests 86
4.2.5.4 Structural Equation Modelling (SEM) analysis 87
5.2.6 Step 6: Presenting the report 89
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CHAPTER 5: Results of the empirical survey
5.1. Introduction 91
5.2. Results of the descriptive information 91
5.2.1. Gender 92
5.2.2. Age groups 92
5.2.3. Home language 93
5.2.4. Occupation 94
5.2.5. Annual gross income 95
5.2.6. Number of people travelling in a group 96
5.2.7. Number of people paying for in a group 96
5.2.8. Number of days spent at the NAMPO Harvest Day 97
5.2.9. Number of night staying over in the Bothaville area 97
5.2.10. Province of origin 98
5.2.11. Average spending 99
5.2.12. Type of visitors attending the NAMPO Harvest Day 100 5.2.13. 2014 is the first year attending the NAMPO Harvest Day 100 5.2.14. Number of previous attendance at the NAMPO Harvest Day 101
5.2.15. Type of accommodation 101
5.2.16. The Harvest Day is the main reason for the visit to Bothaville 102
5.2.17. Main farming interest 103
5.2.18. Marketing vehicles 103
5.2.19. Initiators to the Harvest Day 104
5.2.20. Attendance of activities at the NAMPO Harvest Day 105
5.3. Results of the factor analyses 105
5.3.1 Factor analyses results: Loyalty 106
5.3.2 Factor analyses results: Influential factors 107
5.4. T-test results 110
5.4.1 T-test comparison of gender vs. Loyalty factors 112
5.4.2 T-test comparison of home language vs. Loyalty factors 113
5.4.3 T-test comparison of producers vs. Loyalty factors 114
5.4.4 T-test comparison of processors vs. Loyalty factors 115
5.4.5 T-test comparison of input suppliers vs. Loyalty factors 116
5.4.6 T-test comparison of visitors vs. Loyalty factors 117 5.4.7 T-test comparison of attendance vs. Loyalty factors 118
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5.4.8 T-test comparison of milk vs. Loyalty factors 119
5.4.9 T-test comparison of game vs. Loyalty factors 120
5.4.10 T-test comparison of pigs vs. Loyalty factors 121
5.4.11 T-test comparison of poultry vs. Loyalty factors 122
5.4.12 T-test comparison of wine vs. Loyalty factors 123
5.4.13 T-test comparison of grain vs. Loyalty factors 124
5.4.14 T-test comparison of mixed farming vs. Loyalty factors 125
5.4.15 T-test comparison of fruit vs. Loyalty factors 126
5.4.16 T-test comparison of cattle vs. Loyalty factors 127 5.4.17 T-test comparison of vegetables vs. Loyalty factors 128 5.4.18 T-test comparison of sheep vs. Loyalty factors 129 5.4.19 T-test comparison of television vs. Loyalty factors 130
5.4.20 T-test comparison of radio vs. Loyalty factors 131
5.4.21 T-test comparison of the GrainSA website vs. Loyalty factors 132 5.4.22 T-test comparison of magazines vs. Loyalty factors 133 5.4.23 T-test comparison of newspapers vs. Loyalty factors 134 5.4.24 T-test comparison of word of mouth vs. Loyalty factors 135 5.4.25 T-test comparison of blogs vs. Loyalty factors 136 5.4.26 T-test comparison of Facebook vs. Loyalty factors 137 5.4.27 T-test comparison of a self-initiated visit vs. Loyalty factors 138 5.4.28 T-test comparison of a spouse as an initiator vs. Loyalty factors 139 5.4.29 T-test comparison of friends as initiators vs. Loyalty factors 140 5.4.30 T-test comparison of children as initiators vs. Loyalty factors 141 5.4.31 T-test comparison of family as initiators vs. Loyalty factors 142 5.4.32 T-test comparison of stalls vs. Loyalty factors 143 5.4.33 T-test comparison of an auction vs. Loyalty factors 144 5.4.34 T-test comparison of demonstrations vs. Loyalty factors 145 5.4.35 T-test comparison of Livestock programmes vs. Loyalty factors 146 5.4.36 T-test comparison of Competitions vs. Loyalty factors 147 5.4.37 T-test comparison of Patents vs. Loyalty factors 148 5.4.38 T-test comparison of Women’s programme vs. Loyalty factors 149 5.4.39 T-test comparison of Interactive demonstrations vs. Loyalty factors 150
5.5 Results from the ANOVAs 151
5.5.1 Occupation 152
5.5.2 Type of accommodation 155
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5.6 Results of the Correlation analysis 160
5.7 Preparing for the Structural Equation Model (SEM) 165
5.8 Results of the Structural Equation Model (SEM) 171
5.9 Conclusion 175
CHAPTER 6: Conclusions and recommendations
6.1 Introduction 176
6.2 Conclusions 177
6.2.1 Conclusions with regards to the literature study 177
6.2.1.1 Chapter 2: Agri-tourism and agri-festivals 177
6.2.1.2 Chapter 3: Loyalty 178
6.2.2 Conclusions from the survey 179
6.2.2.1 Results of the descriptive information (Profile) 179
6.2.2.2 Results of the factor analyses 180
6.2.2.3 Results of the t-test, ANOVAs and correlation analyses 181
6.2.2.4 Results of the SEM 182
6.3 Recommendations for the NAMPO Harvest Day to enhance visitor loyalty 182
6.3.1 Agricultural exposure and edification 183
6.3.2 Lifestyle, escape and socialisation 184
6.3.3 General management 184
6.3.4 Price and quality of implements, machinery and livestock 184
6.3.5 Price and quality of food and beverages 185
6.3.6 Signage and marketing 185
6.3.7 Amenities 185
6.3.8 Networking and trade 185
6.3.9 Value 186
6.4 Recommendations for agri-festivals and agri-tourism in South Africa 186
6.5 Recommendations for future research 187
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LIST OF TABLES
CHAPTER 1: Introduction, problem statement, research objectives and method of research
Table 1.1: The number of visitors at the NAMPO Harvest Day 2
Table 1.2: Research on loyalty at festivals 7
CHAPTER 2: An analysis of Agri-tourism
Table 2.1: Definitions of agri-tourism 19
Table 2.2: The profile of the agri-tourist 31
Table 2.3: Previous research about agri-tourism (National and International) 33
CHAPTER 3: Analysing loyalty in a festival context
Table 3.1: Defining loyalty 45
Table 3.2: The comparison between First-time and repeat visitors 66
CHAPTER 4: Clarifying the concepts used in the research process
Table 4.1: Sampling sizes and the outcomes thereof 84
Table 4.2: Absolute values of rs 85
Table 4.3: Goodness of fit indexes and the respective values 89
CHAPTER 5: Results of the empirical survey
Table 5.1: Number of people travelling in a group 96
Table 5.2: Number of people paying for in a group 96
Table 5.3: Number of days spent at the NAMPO Harvest Day 97
Table 5.4: Number of night staying over in the Bothaville area 97
Table 5.5: Average spending 99
Table 5.6 Types of visitors attending the NAMPO Harvest Day 100
Table 5.7: Number of previous attendance 101
Table 5.8: Main farming interest 104
Table 5.9: Marketing vehicles 104
Table 5.10: Initiators to the Harvest Day 104
Table 5.11: Attendance of activities at the NAMPO Harvest Day 105
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Table 5.13: Factor analysis results of the factors that have an influence
on loyalty of the visitors to the NAMPO Harvest Day 107
Table: 5.14: Gender 112
Table: 5.15: Home Language 113
Table: 5.16: Producer 114
Table: 5.17: Processor 115
Table: 5.18: Input Supplier 116
Table: 5.19: Visitor 117
Table: 5.20: 2014 is the first year of attendance 118
Table: 5.21: Milk 119 Table: 5.22: Game 120 Table: 5.23: Pigs 121 Table: 5.24: Poultry 122 Table: 5.25: Wine 123 Table: 5.26: Grain 124
Table: 5.27: Mixed farming 125
Table: 5.28: Fruit 126 Table: 5.29: Cattle 127 Table: 5.30: Vegetables 128 Table: 5.31: Sheep 129 Table: 5.32: Television 130 Table: 5.33: Radio 131
Table: 5.34: GrainSA website 132
Table: 5.35: Magazines 133
Table: 5.36: Newspapers 134
Table: 5.37: Word of mouth 135
Table: 5.38: Blogs 136
Table: 5.39: Facebook 137
Table: 5.40: Self-initiated visit 138
Table: 5.41: Spouse as an initiator 139
Table: 5.42: Friends as initiators 140
Table: 5.43: Children as initiators 141
Table: 5.44: Family as initiators 142
Table: 5.45: Stalls 143
Table: 5.46: Auction 144
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Table: 5.48: Livestock programmes 146
Table: 5.49: Competitions 147
Table: 5.50: Patents 148
Table: 5.51: Women’s programme 149
Table: 5.52: Interactive demonstrations 150
Table 5.53: ANOVA-results for occupation 153
Table 5.54: ANOVA results for the type of accommodation used 155
Table 5.55: ANOVA results for the Province of origin 158
Table 5.56: Results of Spearman’s Rank Order Correlations 162 Table 5.57: Correlation results in preparation for the SEM analysis 166
Table 5.58: Goodness-of-fit indices 172
Table 5.59: Hypotheses tested 172
Table 5.60: The standardised regression weights, estimates and p-value 174
CHAPTER 6: Conclusions and recommendations
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LIST OF FIGURES
CHAPTER 1: Introduction, problem statement, research objectives and method of research
Figure 1.1: Factors which may have an effect on loyalty 5
CHAPTER 2: An analysis of Agri-tourism
Figure 2.1: The trends of Agricultural Productivity in South Africa 23
Figure 2.2: The types of rural tourism 24
Figure 2.3: Stakeholders at an agri-festival 38
CHAPTER 3: Analysing loyalty in a festival context
Figure 3.1: Segmentation of loyal customers 47
Figure 3.2: The Bi-dimensional model 49
Figure 3.3: The Multi-dimensional model 50
Figure 3.4: Conceptual model of loyalty 52
Figure 3.5: The loyalty triangle 54
Figure 3.6: Push and Pull Motivation in Tourism 59
Figure 3.7: Prior decision-making model 62
Figure 3.8: Post-purchase decision making 64
Figure 3.9: Factors influencing loyalty at an agri-festival 67
Figure 3.10: Customer satisfaction 68
Figure 3.11: Customer satisfaction 68
CHAPTER 4: Clarifying the concepts used in the research process
Figure 4.1: Summary of qualitative methods 79
Figure 4.2: Summary of quantitative methods 80
CHAPTER 5: Results of the empirical survey
Figure 5.1: Gender 92
Figure 5.2: Age groups 92
Figure 5.3: Home Language 93
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Figure 5.5: Annual Gross Income 98
Figure 5.6: Province of origin 98
Figure 5.7: 2014 is the first year of attending the NAMPO Harvest Day 100
Figure 5.8: Type of accommodation 101
Figure 5.9: The Harvest Day is the main reason for visitation to Bothaville 102 Figure 5.10: SEM model confirming the loyalty factors of visitors attending
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APPENDIXES
Appendix A: Visitor questionnaire 209
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Chapter 1: Introduction, problem
statement, research objectives and
method of research
1.1 Introduction
The agri-tourism sector is inclusive of farming activities which can be linked to the tourism sector as an entrepreneurial advantage (McGehee & Kim, 2004:161). McGehee and Kim (2004:161) state that the notion of agri-tourism is inclusive of accommodation, educational activities, recreation and festivals. Research by Viljoen and Tlabela (2007:15) showed that there is a new trend among farmers to embrace new opportunities and often farmers will embrace tourism as an income generator. Recent years have seen an exponential growth in interest in the field of agri-tourism, with factors such as poor agriculture, commodity prices, increased production costs, globalisation and industrialisation causing many farmers to find new means of remaining profitable (McGehee & Kim, 2004:161; Myer & De Crom, 2013:295).
In South Africa, there has been a sharp increase in agri-tourism since 1994 (van Niekerk, 2013:3). The agri-tourism sector has seen steady growth for the past 20 years with sustained future growth being predicted by researchers (van Niekerk, 2013:3). Provinces, with large agricultural sectors such as the Eastern and Western Cape and the Free-State, host festivals with agricultural products (Visser, 2007:167). Joshi (2012:25) states that the NAMPO Harvest Day is an example of an festival and specifically, the festival resorts under the agri-entertainment category as festivals form part of this sub category. Currently, the NAMPO Harvest Day is the largest festival of its kind in the Southern Hemisphere (Visser, 2007:105). This festival serves as a showcase for GrainSA (GrainSA provides support to grain producers in South Africa for long term sustainability) for agricultural products and is used as a central meeting place for buyers as well as sellers (GrainSA, 2013a). The attendance figures at the NAMPO Harvest Day for the past three years are displayed in Table 1.1.
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Table 1.1: The number of visitors at the NAMPO Harvest Day
Year Number of visitors
2010 68 900
2011 73 552
2012 71 723
2013 72 376
Source: Adapted from Janeke (2011); Booysen (2012); van Collen (2013); Mare (2010)
The number of visitors in the past four years shows a slight decrease in 2012 and an increase in 2013. Janeke (2011) published in the Vaal Weekly that the reason for the 73 552 visitors in 2011 can be ascribed to the voting day during the NAMPO Harvest Day. However, it is clear that the festival attracts a substantial number of visitors each year. In order to maintain these visitor numbers, an assessment of the factors that influence visitors’ loyalty towards the festival needs to be made. For the purpose of this study loyalty can be defined as repeat visits to the same festival and the aim is to make positive recommendations to friends and family afterwards (Skogland & Sigauw, 2004:222).
This will enable organisers of the festival to determine the degree to which the festival not only attracts visitors, but also how it maintains visitors (Kruger & Saayman, 2012:147). This is especially vital since there has been a sharp increase in competition amongst agri-festivals (Getz, 2002:210). Other festivals in South Africa (other than the NAMPO Harvest Day), which forms part of agri-festivals, are the South African Cheese Agri-Expo Festival, The Royal Show, the Agri-expo, South African International Documentary Festival, Santam Agricultural Farmers Country Festival, The Knysna Oyster Festival, Ficksburg Cherry Festival, Prince Albert Olive Festival and the Robertson Wacky Wine Weekend. This emphasises the importance and growth in agri-festivals, especially in South Africa. Each of these agri-festivals competes for visitors. For this reason the success of any event has become largely based on the loyalty of the visitors to that festival, with primary focus now being placed on not only gaining first-time visitors to a festival, but also on maintaining relations with such visitors to ensure repeat visits to future festivals (Lau & Mckercher, 2004:282).
Hence it stands to reason that event organisers wish to cultivate visitor loyalty to their festivals – such that both current and future business prospects are developed. An assessment of the factors pertinent to the development and maintenance of visitor loyalty to the NAMPO Harvest Day will assist the management of this event to increase visitor satisfaction, and in so doing be able to maintain the current status of the event as the largest of its kind in the Southern
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Hemisphere (Visser, 2007:105). Specifically, knowledge of the variables pertinent to visitor loyalty will assist festival management in bridging service delivery, management and festival program gaps, which could negatively impact on both new and return visitors to the festival.
The layout of this chapter is as follows: the next section provides a background to the problem which is followed by the problem statement, the goals and objectives, the research methodology applied in the study, defining the key concepts and lastly the chapter classifications.
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.2 Background to the problem
The background is divided into three sections. The first section focuses on loyalty and the theories related to the concept. This is followed by a discussion on the factors that may influence loyalty in a festival context as identified by previous research. The background is concluded with an overview of previous research done on the topic as well as the importance of this research.
1.2.1 Loyalty and related theories
The way in which loyalty is perceived has been around for centuries and in the earlier centuries loyalty was used for more power and for businesses to control their consumers (Kumar & Shah, 2004:317). Loyalty can be defined as a feeling of allegiance causing customers to prefer a specific brand almost to the extent that the competition gets eliminated (Schoemaker & Bowen, 2003:48; Skogland & Sigauw, 2004:224).
To explain this concept in more easily understandable terms it can be said that such consumers repurchase a certain product or service regardless of competition, due to the lower prices or better quality they offer. Loyalty, from a consumer’s perspective, can be defined as a long-term sustainable relationship between a customer and the supplier where the customer does not switch to other goods or services available on the market regardless of better quality or better prices (Skogland & Sigauw, 2004:222; Dick & Basu, 1994:99). Odin, Odin and Valette-Florence (2001:76) proposed two approaches, namely the determinist and stochastic approach. The aim of the determinist approach is that loyalty is treated more as an attitude, but investigates the psychological commitment of the purchase, whereas the stochastic approach explains that loyalty is behaviour and simply means that when a consumer buys the same brand repeatedly then it is said that the consumer is loyal.
Kuusik (2007:5) states that repeat purchases must be emphasised. This basically means that repeat purchases were investigated and not the reasons that have an effect on customer loyalty. Modern researchers made use of loyalty theories as transactional satisfaction, trust and value, which can also become the determinants of loyalty (Agustin & Singh, 2005:97). Ribbink,
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Allard, Van Riel and Streukens (2004:447) as well as Agustin and Singh (2005:97) explain that transactional satisfaction is an evaluation of how a customer perceives a product and/or service while trust is a belief that there is a trust relationship between the customer and the service provider. Value is related to a material thing considered to be a fair exchange in return for a thing a customer has purchased and can be defined as the right price and the right quality compared to one another and satisfaction is experienced. Value for money is different for every customer.
Yoon and Uysal (2005:48) state that loyalty can be measured in three different ways, namely the behavioural approach, attitudinal approach and the composite approach. The behavioural approach does not explain the factors that affect customer loyalty, but is rather characterised as repeat purchases and this theory cannot explain why they will become repeat visitors or recommend the product and service to other potential visitors.
For example, this method cannot provide an explanation for why visitors will attend an agri-festival such as the NAMPO Harvest Day annually. The attitudinal approach explains loyalty as a psychological commitment or as part of preference of choice. This means that visitors at the NAMPO Harvest Day may display a positive attitude towards attending the Harvest Day and recommend it to others, or have a negative attitude and will not recommend the Harvest Day to other potential visitors. The last concept, the composite approach, is an integration of both the behavioural and the attitudinal approach, and visitors who purchase a product and service must have a positive attitude towards the brands. Loyalty at the NAMPO Harvest Day applies the composite approach that is a combination of other approaches which means that it is a psychological commitment resulting in a positive attitude towards the Harvest Day and bringing about recommendation to others.
From the discussion above, it is clear that various theories can explain loyalty. A detailed discussion of these theories is reserved for the literature chapters. The next section will discuss the factors that may influence loyalty in a festival context.
1.2.2 Factors influencing loyalty
A variety of factors exist that can influence visitors’ loyalty. Figure 1.1 indicates that loyalty is a product of behaviour intentions at a festival and that specific factors may lead to an increase in customer loyalty (Lee, Lee, Lee & Babin, 2008:58; Ozdemir & Gulha, 2009:364) at a festival such as the NAMPO Harvest Day. The factors which may have an effect on loyalty include festival attributes and visitor attributes that may in return also influence satisfaction, return visits and positive word of mouth referrals. Assessing the influence of these factors is important as it also influences satisfaction and behavioural intentions such as willingness to pay more and
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ultimately loyalty to the festival.
Figure 1.1: Factors which may have an effect on loyalty
Source: Adapted from Baker and Crompton (2000:791); Lee et al. (2008:58); Ozdemir and Gulha (2009:364)
As illustrated in Figure 1.1, festival attributes that may influence loyalty are the program content (a well organised event and management, experiences from the festival and the exhibition program), staff (willingness to help, having enough knowledge to assist the consumer on a request and about the festival), facilities (enough facilities on the site, adequate size for all the consumers, cleanliness of the site, atmosphere of the festival and the layout of the festival), food (quality of the food, price of the food, the availability of traditional food and the variety of foods), souvenirs (the variety of souvenirs, the quality of souvenirs and the price of souvenirs), convenience (includes the convenience of restrooms, hygienic circumstances, convenience of parking close to the festival site and adequate rest areas) and information (adequate and correct signage in and around the site, adequate marketing before the festival and communication procedures are in place). Festival attributes also include the visitors’ interaction with the programs the festivals offer, entertainment and amenities (such as the accessibility of
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people with special needs, restrooms, places to rest, food and beverages and the cleanliness of the festival location) of the festival (Cole & Chancellor, 2009:323; Yoon, Lee & Lee, 2010:336; Ozdemir & Gulha, 2009:363; Lee, Petrick & Crompton, 2007:404; Chi & Qu, 2007:624).
The term visitor attributes refers to the profile of the agri-tourist such as age, race, language and level of education, to name but a few, as well as visitors’ experiences and the travel motives to a festival or event (David, 2003:3). These factors may influence visitors’ loyalty to the festival since different visitors may perceive different factors as important or influential. The afore-mentioned factors may also influence the experiences at the festival which also have an influence on loyalty.
The attitude that a customer has towards a festival will have an influence on the overall satisfaction (Cole & Chancellor, 2009:324). Research done by Hsu, Kang and Wolfe (2002:3) indicated how to create memorable experiences in tourism and increase customer loyalty. Research by Cole and Chancellor (2009:323) indicates that festival managers must focus on the creation of memorable festival experiences as this will result in loyal customers. In order for festival organisers to create satisfying experiences, they must focus on strategies to increase the enjoyment and pleasure of the visitor and the overall experience the visitor has (Ozdemir & Gulha, 2009:363).
As a festival is a combination of food, drink, music and demonstrations, festival organisers can also use these attributes to create a satisfying experience (Lee et al., 2008:56; Robinson & Clifford, 2012:572). The importance of determining which of these aspects influence loyalty is that it stimulates customer satisfaction and increases profits (Reichheld, 2001:46). Every festival’s goal is to ensure that the visitors are satisfied (Van Niekerk & Coetzee, 2011:348). To create this satisfaction, emphasis must be placed on providing quality goods and services, creating a memorable experience, making sure to retain repeat visitors and lastly, to grow and attract first-time visitors (Zarfati, 2008:8). The literature review from Hallowell (1996:28) states that customer satisfaction influences the notion of loyalty which can then lead to profitability. This is why customer satisfaction is such a critical aspect for many industries. To ensure customer satisfaction, the organisers of an event must pay close attention to the creation of overall festival quality (Yoon et al., 2010:336). Lee et al. (2008:58) further state that customer satisfaction and behavioural intentions are important aspects when establishing long-term relationships and ensuring repeat visitors in the future. Customer satisfaction also results in positive word of mouth recommendation to others (Lee et al., 2008:68; Yoon et al., 2010:337); repurchase intentions (Yoon et al., 2010:337) and high tolerance for price premiums (Lee et al., 2008:59; Anthanassopoulos, Gounans & Stathakopoulos, 2001:687). Satisfaction may therefore in return also lead to loyalty.
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According to Bowen and Chen (2001:213), it is of utmost importantance to know the combination of factors that influence loyalty. Loyalty can increase profits, promote the business/festival, create business referrals, increase sales and motivate repeat purchases (Bowen & Chen, 2001:213; Edvardsson, Johnson, Gustafsson & Strandvik, 2000:919). When visitors experience higher levels of loyalty it encourages their willingness to pay more for a product or service at an event or festival. Loyalty also influences the visitors’ behavioural intentions indirectly through satisfaction towards a product or service (Cole & Chancellor, 2009:323). Chen and Tsai (2008:1115) and Edvardsson et al. (2000:920) state that behavioural intentions include evaluations during the stay such as the experience, perceived quality, perceived value and overall satisfaction, while future behaviour intentions include evaluations such as the intention regarding repeat visits, the willingness to recommend and positive word of mouth referrals.
Numerous advantages of loyalty also exist such as: cost-effective marketing which can be realised as there is no need to replace a customer when visitors are loyal (Anderson & Srinivason, 2003:124; Rust, Lemon & Zeithaml, 2004:109), providing more goods and services with better quality and the prices associated with better quality as loyal customers are not price sensitive (Zeithaml, 2000:68; Downling & Uncles, 1997:71). Price insensitivity occurs when the customer still prefers a brand even though the price fluctuates; creating brand advocacy refers to the situation in which the customers will continue their loyal attitudes despite other products or services on the market. Customers, in this phase, will also provide positive recommendations towards the product or services rendered (Zeithaml, 2000:68) and forecasting becomes easier. Assessing these factors, cost estimates can be predicted, as there will be loyal customers that will always invest in the products or services and it will ensure that there is a strong customer base. This will also give greater peace of mind to businesses as businesses will always have an income and also have a sense of competitive advantage (Salanova & Agust, 2005:1227).
1.2.3 Previous research on loyalty in a festival context
The following table indicates previous research conducted on loyalty in a festival context.
Table 1.2: Research on loyalty at festivals
Author(s) Research conducted
Baker and Crompton (2000) Researched how quality, satisfaction and behavioural intention can have an effect on loyalty.
Main findings: Quality and satisfaction had
indirect effects of behavioural Intentions. However, there is a stronger linkage with loyalty at festivals.
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Lee et al. (2008) The festivals rely on emotions, satisfaction and loyalty in a theoretical model and what makes a festival a marketing success.
Main findings: The research identified that the
festival program is of the utmost importance to create customer satisfaction and which then turns into customer loyalty.
Ozdemir and Gulha (2009) The study identified the details of event performance and the influence it has on satisfaction and loyalty of the festival visitors.
Main findings: The research found that the festival
program and the quality had a direct influence on loyalty at festivals along with the facilities, resting areas, adequate size of the site, atmosphere and the festival site.
Yoon et al. (2010) Research was conducted by measuring festival quality, the value of affecting visitor’s satisfaction and loyalty by means of a structural approach.
Main findings: All the categories of festivals such
as the program, souvenirs, food and faculties had a positive influence on the value, but not improved festival loyalty. The research assumed that the quality dimensions are the biggest contributors to festival loyalty.
Kim and Suh (2010) Research was conducted to examine the food-related personality traits and the relation between satisfaction, loyalty and personality.
Main findings: The research showed that a
positive relation exists between satisfaction and loyalty, food involvement showed a positive connection and food neophobia had a negative result both on satisfaction and loyalty.
Kruger, Saayman and Ellis (2010) Research was conducted based on a contrast between first-time and repeat visitors and how these visitors can have an effect on loyalty.
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remarkable changes between first-time and repeat visitors in the categories such as
socio-demographics, behaviour characteristics,
destination perceptions, satisfaction and image as well as travel motivations. Festival facilities can
indirectly create satisfaction and loyalty.
Understanding the motivations to attend a festival can increase repeat visits and loyalty.
Lemmer (2012) Research was conducted at the Klein Karoo National Arts Festival (KKNK) to determine the status of brand loyalty to arts festivals at the arts festival.
Main findings: The research found that brand
feelings were the highest loyalty level which means that it will have an influence on the visitors who attend the arts festival and the ability to recommend the arts festival to friends and family.
From Table 1.2, it is evident that even though loyalty factors have been researched it is applicable to other categories of tourism such as the food and beverage industry, marketing in the tourism industry, quality and satisfaction in the tourism industry and what makes a tourist satisfied. All these research endeavours did mention loyalty as a behavioural intention, but never the exact factors that contribute to loyalty at a festival or specifically to an agri-festival. The research already done, furthermore collectively shows that research on agri-festivals has never been conducted in a South African context, which creates a gap as South Africa hosts a large number of festivals annually, especially agri-festivals such as the NAMPO Harvest Day. The type of festival also determines different loyalty factors. When comparing an arts festival with an agri-festival different loyalty factors will be present. Different tourists also attend different festivals and therefore the demographic characteristics of the tourist and the travel motives will vary.
Assessing the factors that may influence loyalty at agri-events such as the NAMPO Harvest Day, have the following advantages:
Festival management can uphold their reputation for being the biggest festival of its kind in South Africa (Visser, 2007:105). This can be done by loyal customers who will also refer other visitors to the NAMPO Harvest Day with the possibility of them also becoming loyal visitors (Salanova & Agust, 2005:1227).
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Festival management can invest in new product and service innovations as loyal customers have a positive response to buying products or services (Anderson & Srinivason, 2003: 124) such as quality products and services, positive perception and positive attitudes not only to the brand, but also to the organisation and its employees (Salanova & Agust, 2005:1227).
Loyalty creates a sustainable demand for agricultural products and services such as implements and seeds. The Harvest Day is known for the introduction of new sustainable farming methods and showcasing the latest technology in the farming industry and this shows that there is a distinct demand for agricultural products and services especially in South Africa (GainSA, 2013).
The NAMPO Harvest Day can also provide more products and services that are of more quality and better prices as loyal visitors tend to invest more money even if the prices fluctuate each year. This year there were 25 new exhibition spaces to add to the 650 exhibitors that attend each year (GrainSA, 2013b).
1.3 Problem statement
Given the sporadic and sustained growth of the events industry over the last 20 years, coupled with the increased level of competition in this industry, it stands to reason that any festival management team would wish to determine the factors that may positively influence loyalty to a festival.
Since the NAMPO Harvest Day is the largest festival of its kind in the Southern Hemisphere, it would stand to reason that its organisers would wish to see continued growth and prosperity of the event and to make sure they are technologically advanced. Festival organisers can use this information to their own advantage as loyalty poses various advantages. Every festival undergoes a festival lifecycle similar to the product lifecycle. This means that festivals have continuous growth until it reaches a point on the lifecycle where the ticket sales drop. It is evident that the NAMPO Harvest Day will continue with its success and can assist other agri-festivals to achieve success or experience a growth in the number of visitors rather that a decline in the number of visitors.
Previous research conducted concluded that loyalty is a behavioural intention and that a direct link exists between loyalty and customer satisfaction and providing quality to the consumer. Previous research on loyalty has also only focused on how to achieve loyalty, but not on the specific factors influencing loyalty. This research will therefore provide festival managers at the
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NAMPO Harvest Day (based on literature) to identify what makes visitors at a festival loyal to ensure continuous success as well as providing a foundation to management at other agri-festivals that is struggeling to retain visitors or not growing as the agri-festival is supposed to. Agri-tourism is also a relatively new concept and limited research has been done on agri-tourism; thus this research will make a contribution to the current literature base on the topic.
With the afore-mentioned benefits in mind, the research question this dissertation therefore seeks to address is: what combination of factors contributes to the loyalty of visitors at an agri-festival in South Africa such as the NAMPO Harvest Day?
1.4 Goal of the study
1.4.1 Goal
To assess the factors that influence visitor loyalty to an agri-festival in South Africa.
1.4.2 Objectives Objective 1
To conduct an analysis of agri-tourism and agri-festivals by means of a literature review.
Objective 2
To conduct an analysis of the concepts of loyalty and related theories by means of a literature review.
Objective 3
To identify the set of factors that influence visitor loyalty at an agri-festival in South Africa by means of an empirical survey.
Objective 4
To draw conclusions and make recommendations with regard to this study.
1.5 Research methodology
The following section includes the research methodology applied in this study.
1.5.1 Literature study
Keywords pertinent to the development and execution of this study such as agri-tourism, Agri-festivals, NAMPO Harvest Day and loyalty formed the backbone of this study. Specifically, an investigation was conducted as to the nature and functioning of the concepts of agri-tourism and loyalty. Research was conducted via the use of academic resources such as journal articles,
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newspaper articles, books, theses and dissertations.
Internet research sources were also consulted due to the lack of research into the fields of agri-tourism and the NAMPO Harvest Day in South Africa. Scientific databases such as Google Scholar, Science Direct and Ebscohost were consulted as primary research databases. This study comprises both a literature study and an empirical survey and as such, both primary and secondary resources are included in this research.
1.5.2 Empirical study
The following section describes the methods of conducting the research for the empirical study.
1.5.2.1 Research design and method for collecting data
Descriptive research is used when researchers wish to describe an intangible factor such as the target market (Waters, 2011:104). In this particular study, the researcher wishes to provide the management of the NAMPO Harvest Day with information regarding the factors that has the greatest influence on loyalty at a festival.
Since a self-administered questionnaire was used to collect data, this research is of quantitative nature. Berndt and Petzer (2011:31) argued that quantitative methods are used in a statistical analysis and by means of this, analysing the data to be interpreted.
It is also used to describe the nature of the research. Waters (2011:5) further identified that quantitative research uses numerical approaches to solve problems and draw statistical conclusions and make recommendations. A quantitative research method is used to develop knowledge concerning a certain concept and includes examples such as hypotheses, observation, testing theories and surveys which are used to collect data and then determine statistical analysis (Creswell, 2002:18).
The advantages of using a quantitative research method include (Sukamolson, 2005:5):
that large quantities of data and population sizes are obtainable when the researcher needs it; and
it is inexpensive and data analysis is easy to conduct using most statistical programs.
1.5.2.2 Sampling
The population can be defined as the total group of people that may be asked to complete a questionnaire in the survey (Waters, 2011:85). Waters (2011:85) refers to a population as entities that have something in common with one another such as a characteristic. This means that the population for the NAMPO Harvest Day is visitors who attend from across South Africa
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to attend the NAMPO Harvest Day. Hence every visitor is afforded a fair opportunity of participating in the survey. A sample according to Waters (2011:85) is the choice to select specific members of the population to partake in the research being conducted; a sample is thus a subsection of the entire population.
The following formula as proposed by Krejcie and Morgan (1970:607) was used to determine the sampling size:
S=[X2NP (1-P)] / [ d2 (N-1) + x2 P (1-P)]
To understand the formula better the analysis of the different components as presented in the formula is as follows:
S = Sampling size
X2 = Desired confidence level
N = Population size P = Population proportion d = Degree of accuracy
As there were incomplete questionnaires or those not returned; 5% was appropriate to compensate for questionnaires for errors. The attendance figure for the NAMPO Harvest Day in 2013 was 72 376 visitors (DAFFnews, 2013). When applying the formula by Krejcie and Morgan (1970) 382 questionnaires were needed to get a representative sample. However in order to take into account the possibility of incomplete questionnaires, the sample size was increased to 500 questionnaires.
1.5.2.3 Development of the questionnaire
Self-administered questionnaires were distributed among the visitors of the NAMPO Harvest Day in 2014. The questionnaire consisted of 4 sections and is attached as Appendix A. Section A contained demographic details such as gender, age, home language, occupation, home province and preferred accommodation as well as spending behaviour. Spending behaviour included the number of persons paid for, length of stay and the expenditures of visitors on the different aspects of the trip.
Section B addressed the components with regard to what contributes to loyalty at a festival, specifically the NAMPO Harvest Day and there was 43 measurable items. This information was presented in a Likert scale ranging from 1-5 where:
14 1 = Strongly Disagree 2 = Disagree 3 = Neutral 4 = Agree 5 = Strongly Agree
The loyalty factors were based on the loyalty factors illustrated in Figure 1.1 (and subsections), namely programme content, staff, facilities, food, convenience, information and memorable experiences. Travel motives also assisted in identifying loyalty factors and this is the reason for the combination of travel motives and specific loyalty factors. Crompton and Mckay (1997:430) identified a set of travel motivations used accordingly such as to seek out new experiences, to spend time with friends and relatives, for rest and relaxation and to gain new knowledge.
Section C addressed the number of years the respondent had attended the NAMPO Harvest Day before and whether or not they are a first-time visitor or repeat visitor.
In Section D, respondents could indicate whether he/she is a producer, processor or input supplier. They identified their main farming activity or want to see at the NAMPO Harvest Day such as grains, mixed farming, fruit, vegetables, cattle, goats, sheep, pigs, poultry, winery, milk and game. Then who initiated the visit to the NAMPO Harvest Day, how the respondent had heard about the Harvest Day and the type of accommodation used during the respondents stay.
1.5.2.4 Survey
The survey made use of probability sampling and a stratified sampling method was used during the course of the NAMPO Harvest Day. A probability sample concept is based on random selection and has a controlled procedure that assures that every respondent has a known chance of being chosen as part of the population when doing research, and the pattern for the research at the NAMPO Harvest Day was to ask every second person throughout the location of the Harvest Day especially where the visitors rested for a few minutes. Singh (2007:107) further states that a stratified sample can be defined as respondents that are grouped from a heterogeneous population into a homogeneous population and after having done this a random sample is drawn from all the respondents. Stratification was achieved where the visitors with different demographical and behavioural characteristics was grouped based on what they have in common. The survey was done by means of a self-administered questionnaire. The questionnaires were distributed at the festival located in Bothaville from 13 to 16 May 2014.
The survey was conducted on the festival grounds especially at various relaxation points on the festival grounds to limit bias, where visitors paid more attention to the questionnaire as they
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were relaxed and less distracted by the happenings around them. Only adults were requested to complete questionnaires. Respondents were informed of the voluntary nature of the study. Trained fieldworkers were used to distribute the questionnaires in and around the location to ensure an even distribution of data, to give a description of the purpose of the survey to the respondents and to communicate the necessary information to them.
The questionnaires were progressively handed out towards the end of the festival as this gave a more accurate account of the different types of visitors at the festival as well as their spending. The quota of questionnaires distributed over the duration of the 4 days was 90 questionnaires on day 1, 120 questionnaires on day 2, 130 questionnaires on day 3 and 160 questionnaires on day 4. A total of 422 completed questionnaires were received which is 60% of the population.
1.5.2.5 Data Analysis
Microsoft Excel was used for data capturing, and the statistical services of the North-West University, Potchefstroom Campus, assisted with the data analysis with the help of a statistical program known as Statistical Package for the Social Sciences (SPSS) Version 15. SPSS assists researchers and data analysts in using data and turning it into usable information that can be valuable to a specific research question.
The profile of the respondents were firstly illustrated with the help of tables and graphs where after a factor analysis was used to identify the loyalty factors at the NAMPO Harvest Day as this technique can clearly show the weight the respondents gave to every variable. A factor analysis can be defined as factors that are completely dependent on each other by means of the correlation between the variables. (Mouthino, 2000:108). Analysis of variance (ANOVA), t-tests as well as correlation analysis were used to determine which socio-demographic and behavioural characteristics influenced the loyalty factors. ANOVAs are used to determine the difference between the means of two or more groups and therefore a larger population whereas a t-test is only used to measure the difference between the means of two groups meaning a smaller population (Eiselen, Uys & Potgieter, 2005:119). Spearman’s Rank order correlations were used to determine the strength of direction between variables (Eiselen et al., 2005:119). Within this study, correlations were used to determine which aspects correlates with one another in terms of the demographic profile/behavioural aspects and the loyalty factors.
A Structural Equation Model was used to indicate the relation between the identified factors and visitor loyalty at the NAMPO Harvest Day. A Structural Equation Model (SEM) is used to determine whether a certain model is valid and not to prove or find a model that is suitable for a certain situation (Lee et al., 2008:59). A SEM analysis estimates effects between different variables and serves as a flexible approach to modelling different data sets using a wide variety
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of estimation methods and in the process accommodates means, pattern of means, latent interaction and clustered data (Byrne, 2011:14). A detailed discussion of the statistical analyses used in this study is reserved for Chapter 4.
1.6 Defining the concepts
The following concepts are regularly used throughout the study and therefore need clarification.
1.6.1 Agri-tourism
The notion of agri-tourism resorts under the hospitality sector and specifically relates to entrepreneurial activities initiated by agricultural entrepreneurs in this sector, with the specific purpose of agri-tourism relating to farming activities (Phillip, Hunter & Blackstock, 2010:755). Agri-tourism can also be defined as the contact given to the tourist not only in the physical environment, but also the environmental aspects. This makes them aware of the traditions and lifestyles of the people from the local community (Sznajder & Przezborska, 2004:166). From these definitions, it is evident that agri-tourism can be defined as any activity that aims at linking the agricultural and tourism sectors, such that more entrepreneurial opportunities are realised. Generally agri-tourism includes any leisure and recreational activity with an agricultural background.
1.6.2 Agri-festivals
To produce a proper definition of agri-festivals the definition of both a festival and agriculture must be combined. Bowdin, Allen, O’Toole, Harris and McDonnell (2011:23) refer to festivals as an output of products and services with a clear and specific program delivered to consumers with a specific purpose. When defining agriculture it means the cultivation of land, productivity of crops and livestock for economic purposes and in some cases using the resources on earth/farms (Norman, Janke, Freyenberger, Schurle & Kok, 2011:1). Based on the definitions above an agri-festival can be defined as a festival providing goods and services with an agricultural background that can be used to assist farmers with production of crops and livestock.
1.6.3 NAMPO Harvest Day
The NAMPO Harvest Day is one of the leading privately funded festivals in the world. The festival hosts the demonstration of agricultural machinery and livestock, and allows buyers as well as sellers in this industry to meet trade and network on an annual basis in the town of Bothaville, situated in the Free-state Province (GrainSA, 2013b; Spencher, 2013).
17 1.6.4 Loyalty
Loyalty is known to be the strength of the relationship between the supplier of goods and services and customer to encourage repeat purchases (Dick & Basu, 1994:99; Edvardsson et
al., 2000:918; Cole & Chancellor, 2009:324). Loyalty can also be defined as a long-term
relationship between a customer and the supplier with the customer not changing to other goods or services available on the market (Skogland & Sigauw, 2004:222). Loyalty can thus be defined as a long-term relationship in which repeat purchases can be encouraged whilst ensuring the elimination of competitors. It is therefore important to provide to repeat visitors that are already proven to be loyal and making sure that the first-time visitors become loyal in the long-term.
1.7 Chapter classification
This chapter (Chapter 1) includes the introduction, problem statement, goals and objectives, research methodology and the definition of key concepts pertinent to this study. The aim of this chapter is to give an overview of the research to be conducted and how the research will be conducted to reach the goal as stipulated in the research proposal, namely to determine which factors lead to the development and maintenance of loyalty at an agri-festival such as the NAMPO Harvest Day.
Chapter 2 provides an in-depth analysis of the agri-tourism sector and the research that has been done with reference to the historical context of agri-tourism, where agri-tourism originated as well as the South African context of agri-tourism. This chapter also includes the profile of the agri-tourist, the classification of agri-tourism and also the economic, ecological and socio-cultural benefits of agri-tourism. Lastly, an in-depth discussion about agri-festivals will be discussed.
Chapter 3 provides a literature overview of loyalty and the factors that lead to loyalty from the different perspectives and specifically in a festival context with reference to loyalty theories in marketing and tourism, the benefits of attracting first-time as well as repeat visitors, the benefits of loyal visitors and how customers go through the decision-making process before and after the sale.
Chapter 4 provides analysis discussion of the methodology and the research process that was followed to obtain the results which are discussed in Chapter 5. The statistical analyses that is used within this research is a factor analysis, correlation analysis, ANOVA analysis, t-tests and the Structural Equation Modelling (SEM) analysis. This chapter only provides a theoretical foundation for Chapter 5.
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Chapter 5 focuses on the results of the empirical study. This chapter includes an analysis of the demographic profile in tables and graphs and the results of both the factor analysis and the Structural Equation Model (SEM). ANOVA, t-testing and Spearman’s rank order correlations are used to determine whether any demographic information or behavioural characteristics exist that have a direct influence on loyalty.
The final chapter, Chapter 6, consists of the conclusions and recommendations made based on the results to the festival management of the NAMPO Harvest Day which can be used to enhance visitor loyalty to the festival.
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Chapter 2: An analysis of
Agri-tourism
2.1 Introduction
The 21st century is being characterised by a number of new trends a number of new trends in
the structure of agri-tourism, especially with the production in South Africa, and the average farm sizes grew due to higher value in commodities (Liebenberg & Pardey, 2010:284). Hatch (2012:1) states that in developing countries such as South Africa and the majority of Africa, agri-tourism entrepreneurial activities cannot be realised as the availability of resources are scare. However, in order to capitalise on agri-tourism opportunities, a clear understanding of the concept is necessary.
The purpose of this chapter is therefore to fully describe and investigate the concept of agri-tourism based on a literature review. Within this chapter agri-agri-tourism will be defined coupled with a historical overview of agri-tourism, the South African perspective on agri-tourism, classification of agri-tourism, benefits of agri-tourism, the background of the agri-tourist and previous research regarding agri-tourism and agri-events/festivals will be explained as well as the role-players at an agri-festival. Lastly, the benefits of the agri-festival will be explained with specific reference to the NAMPO Harvest Day.
2.2 Defining Agri-tourism
The following table indicates the various definitions of what agri-tourism entails as described by a number of researchers over the years.
Table 2.1: Definitions of agri-tourism
Referencing Definition
Brown (2002:9) The decision to visit an operational farm or any other agricultural or agri-business operation for
purposes of enjoyment, involvement and
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Sznajder and Przezborska (2004:166) Agri-tourism is the contact given to the tourist not only in the physical environment, but also the environmental aspects. This makes them aware of the traditions and lifestyles of the people from the local community.
Sonnino (2004:286) Activities in the hospitality sector by agricultural entrepreneurs (sometimes the members also) and the purpose is to remain connected to the farming activities.
Marques (2006:151) Agri-tourism is part of rural tourism where the farm house needs to be converted and integrated into an agricultural estate, but to still have farming activities on the land.
This is also where visitors can take part in the farming activities.
McGehee, Kim and Jennings (2007:111)
Agri-tourism is rural enterprises in a working farm environment, but with the commercial tourism component in mind.
Barbieri and Mtshenga (2008:168) Any practice that consists of working on a farm with the goal of attracting visitors and letting the visitors experiencing the farm in various ways.
* Please note, only recent sources are indicated in the table.
It is evident that with every definition mentioned above, agri-tourism is an entrepreneurial activity that is used to gain exposure and make tourists aware of farming activities as an educational aspect. Agri-tourism, for the purposes of this study, can then be defined as agricultural activities that is used as an attraction in the tourism industry that creates a memorable experience for the tourist. Agri-tourism can further be defined as an entrepreneurial
venture and an educational aspect where farm owners can use farming activities as a tourist attraction and then reap the profit from these activities.
Agri-tourism is a concept that has existed since the early 1900s and agri-tourism started in countries such as the United States of America, Europe, Australia and New Zealand. The following section will address the historical overview of agri-tourism in these countries.
